A group of 12 Democratic senators has presented a new bill aimed at comprehensive regulation of the cryptocurrency market in the United States. The document proposes a regulatory framework for the issuance and circulation of digital assets, with a particular focus on protecting investor rights and ensuring market transparency.
This is reported by Finway
Key Provisions of the New Initiative
Among the authors of the legislative initiative are Mark Warner, Kirsten Gillibrand, Cory Booker, Adam Schiff, Andy Kim, and other prominent Democratic politicians. The document notes that the cryptocurrency market has enormous economic potential; however, it currently suffers from a lack of clear rules and effective regulation, creating risks for investors.
“We owe it to the millions of Americans participating in this market to create clear rules that protect consumers and safeguard our markets. We must also ensure that digital assets are not used to fund illegal activities or line the pockets of politicians and their families,” the politicians stated in a joint declaration.
The bill covers a number of important aspects:
- Closing regulatory gaps — The Commodity Futures Trading Commission (CFTC) will gain oversight authority over digital assets that are not classified as securities. The industry will also receive standards for disclosing information about tokens and projects.
- Defining the legal status of crypto assets — a clear classification of tokens and coins is proposed.
- Expanding SEC powers — for assets that fall under the definition of securities, financial market regulations will apply.
- Oversight of DeFi projects, as well as a ban on interest accrual on stablecoins.
- Mandatory registration of platforms with the Financial Crimes Enforcement Network (FinCEN).
- Implementation of anti-money laundering and counter-terrorism financing policies, as well as a ban on the activities of platforms that help circumvent sanctions.
Additional Restrictions and Funding for Oversight
A separate provision of the bill prohibits politicians, officials, and their family members from issuing and promoting crypto tokens. They will also be required to declare all crypto assets and disclose any rewards received for promoting projects in this area.
The document provides for increased funding for the CFTC and SEC, enabling these agencies to better oversee the digital asset market. The Democrats’ initiative serves as an alternative to the CLARITY bill approved in July 2025, proposed by another political party in the U.S. House of Representatives.